During the Spring Festival period, the concept of AI in the US stock market frequently reported good results, among which AMD, known as a weather vane, experienced a nine consecutive positive trend after the quarterly report was released, with an increase of 89.75% within a month.
At present, the stock price of AMD Computer has reached $803, slightly lower than last Thursday's high, but this has not reached the endpoint perceived by Wall Street.
Bank of America Securities analyst Ruplu Bhattacharya previously stated that there is still a lot of room for growth in AMD computers. He set a target price of $1040 for the stock.
Bhattacharya wrote in a client report that supercomputers provide server and storage solutions and will be the main beneficiaries of demand growth driven by artificial intelligence. She also believes that the market for artificial intelligence servers is much larger than Wall Street's current model predicts.
Wall Street darling
The stock price of ultramicro computers has soared by 800% in the past year, thanks to the strong rise of the artificial intelligence field and also related to the identity of ultramicro computer data center service providers.
In the past year, AI has driven the growth of the entire US technology industry, and the biggest beneficiary so far is undoubtedly chip manufacturer Nvidia. But Bhattacharya believes that companies not only need the chips used by AI, but also need to ensure that the server infrastructure for AI operation is sufficient.
This is also where the competitiveness of ultramicro computers lies. Looking back at the performance of ultramicro computers, over 50% of their revenue comes from artificial intelligence related servers, and they closely cooperate with technology giants such as Nvidia and Samsung, occupying an extremely advantageous position in the AI field.
At the same time, other competitors in the field of server solutions, such as IBM, Dell, and HP, whose focus on artificial intelligence business has not reached the level of specialization of ultramicro computers, which allows ultramicro computers to keep up with the iteration speed and market demand of artificial intelligence faster.
If, as predicted by Bhattacharya, the artificial intelligence server market grows at a rate of 50% in the coming years, the sales and profits of ultramicro computers will further explode, and even expand like Nvidia.
The only thing to be vigilant about is whether the artificial intelligence industry can continue to thrive, which is crucial for ultramicro computers that have almost all of their treasures pinned on AI.